Godrej Properties Q1FY26 Results: Net Profit Rises 15% YoY to ₹598 Cr Despite 41% Revenue Decline

Mumbai, 1 August 2025: Godrej Properties Ltd (NSE: GODREJPROP, BSE: 533150) released its Q1FY26 earnings on Thursday, reporting a 15.3% year-on-year rise in consolidated net profit to ₹598.40 crore, even as revenue from operations dropped sharply by 41.2% YoY to ₹434.56 crore. The earnings were approved at the company’s board meeting held between 12:00 p.m. and 12:30 p.m. today.

Revenue Drops by ₹304 Cr YoY to ₹434 Cr as Real Estate Sales See Contraction

Godrej Properties’ consolidated revenue from operations fell to ₹434.56 crore in Q1FY26, down from ₹739 crore in Q1FY25. The real estate segment, which continues to be the company’s core contributor, saw a 43.1% YoY decline in revenue to ₹406.96 crore, while the hospitality segment grew 19.7% to ₹27.60 crore. The overall decline was largely attributed to lower project recognition and a slower pace of handovers during the quarter.

Net Profit Up 15% YoY to ₹598 Cr in Q1FY26 Backed by Gains from JV Stake Sale

Despite a lower topline, net profit for the quarter rose 15.3% YoY to ₹598.40 crore, up from ₹518.80 crore in Q1FY25 and 58.1% higher sequentially. The growth was driven by a 23.4% YoY rise in other income to ₹1,185.78 crore, primarily due to the divestment of stakes in joint ventures and favourable fair valuation under IND AS 109 norms.

The company booked gains worth ₹28.29 crore from divestments in three JV entities-Madhuvan Enterprises, Vagishwari Land Developers, and Munjal Hospitality.

EBITDA Margin Expands to 58.09% in Q1FY26 as Operating Costs Normalise

Adjusted EBITDA margin improved significantly to 58.09%, compared to 52.01% in Q1FY25 and 25.50% in Q4FY25, suggesting improved operational efficiency and cost control.

Total income for Q1FY26 stood at ₹1,620.34 crore, down 4.7% YoY and 39.6% QoQ, impacted by the drop in core revenue despite a rise in other income.

Standalone Net Profit Falls 88.6% YoY to ₹56 Cr as Operating Revenue Contracts Sharply

On a standalone basis, revenue from operations plunged by 44% YoY to ₹106.07 crore, while net profit dropped 88.6% YoY to ₹56.11 crore, largely due to a higher base in the previous year and subdued income from standalone operations. Total standalone income declined 50.9% to ₹577.45 crore.

Godrej Properties Share Price Dips 1.43% Post Q1 Results as Investors React to Revenue Decline

At 12:59 p.m. IST, shares of Godrej Properties Ltd were trading at ₹2,072.80, down ₹30.10 or 1.43% from the previous close. The stock opened at ₹2,105.00, touched an intraday high of ₹2,123.00, and a low of ₹2,063.20. Investors appeared cautious following the revenue miss, even as profit improved. The company’s market capitalisation stood at ₹62,390 crore, with a P/E ratio of 42.27.

Company Maintains Strong Balance Sheet with Net Worth of ₹17,912 Cr and Low Leverage

As of Q1FY26, the company maintained a gross debt-to-equity ratio of 0.78 and a net debt-to-equity ratio of 0.26, indicating limited reliance on debt. The interest coverage ratio (ISCR) and debt service coverage ratio (DSCR) stood at 3.13 each, reflecting a comfortable debt servicing capacity. Net worth as of June 30, 2025, was ₹17,912.64 crore.

Godrej Properties Key Metrics Reflect Divergence Across Profitability and Growth Indicators

As per preset metrics, market capitalisation is high within the industry at ₹62,343.6 crore, and the PE ratio TTM is above industry median at 44.5. The PEG ratio (0.5) indicates undervaluation relative to earnings growth. However, net profit quarter growth YoY is negative at -18.9%, while TTM growth is robust at 93%. Return on Equity (ROE) stands at 8.1% and Return on Assets (RoA) at 2.5%, both below the industry median, suggesting room for improvement in asset utilisation. Operating profit margins remain below peers, with OPM for the quarter at 5.2% and TTM at 0.9%.

About Godrej Properties: Leading Urban Developer with a Pan-India Presence

Godrej Properties Ltd, part of the Godrej Group, is one of India’s leading real estate developers with a presence across residential, commercial, and township segments. The company’s projects span key cities like Mumbai, Pune, Bengaluru, NCR, and Hyderabad. Its equity shares are listed on the NSE and BSE, and its debt instruments are also actively traded under multiple ISINs.

REF: https://nsearchives.nseindia.com/corporate/GODREJPROP_01082025123558_SEIntimation.pdf

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